Bitcoin Price Decline To Resume? These Could Be The Factors To Watch

1 February 2024

Bitcoin price struggled to clear the $43,750 resistance. BTC is now declining and there could be more losses if there is a move below the $41,800 level.

Bitcoin price is slowly moving lower from the $43,750 resistance zone.
The price is trading below $42,800 and the 100 hourly Simple moving average.
There was a break below a connecting bullish trend line with support near $42,500 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could continue to decline if there is a close below the $41,800 level.

Bitcoin Price Starts Another Decline

Bitcoin price attempted more gains above the $42,500 resistance zone. BTC cleared the $43,500 resistance zone, but the bears were active near the $43,800 zone.

The bulls made more than two attempts to clear $43,800 but failed. A high was formed near $43,742 and the price started a fresh decline. There was a move below the $43,000 level. Besides, there was a break below a connecting bullish trend line with support near $42,500 on the hourly chart of the BTC/USD pair.

Bitcoin is now trading below $42,800 and the 100 hourly Simple moving average. A low was formed near $41,888 and the price is now consolidating losses. Immediate resistance is near the $42,350 level. It is near the 23.6% Fib retracement level of the downward move from the $43,742 swing high to the $41,888 low.

The next key resistance could be $42,800 or the 50% Fib retracement level of the downward move from the $43,742 swing high to the $41,888 low, above which the price could start a decent increase. The next stop for the bulls may perhaps be $43,200.

Source: BTCUSD on TradingView.com

A clear move above the $43,200 resistance could send the price toward the $43,800 resistance. The next resistance is now forming near the $44,200 level. A close above the $45,000 level could push the price further higher. The next major resistance sits at $46,500.

More Losses In BTC?

If Bitcoin fails to rise above the $42,800 resistance zone, it could continue to move down. Immediate support on the downside is near the $41,800 level.

The first major support is $41,200. The main support could be $40,950. If there is a close below $40,950, the price could gain bearish momentum. In the stated case, the price could dive toward the $40,000 support.

Technical indicators:

Hourly MACD – The MACD is now losing pace in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.

Major Support Levels – $41,800, followed by $41,200.

Major Resistance Levels – $42,350, $42,800, and $43,800.

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